SRA warns of il­licit money flow

Swazi Observer - - BUSINESS -

WHILST the im­port­ing and ex­port­ing of goods en­cour­ages ro­bust growth of the econ­omy, it is also im­por­tant that coun­try is care­ful of il­licit money flows that might come from multi­na­tional com­pa­nies.

“The coun­try gets 50 per cent of its rev­enue from South­ern African Cus­toms Union (SACU) pool and the agree­ments signed by the coun­try with other trad­ing bod­ies have to be looked into. “The fol­low­ing trade agree­ments to which the coun­try is party al­low for move­ment of goods un­der pref­er­ence SADC Trade Pro­to­col, Com­mon Mar­ket for East­ern and South­ern Africa (COMESA) Trade Pro­to­col, Euro­pean Union-SADC Eco­nomic Part­ner­ship Agree­ment, SACU- EFTA, and SACU- MERCOSUR.

Th­ese agree­ments put us in good po­si­tion as goods ad­mit­ted un­der pref­er­ence into ex­port mar­ket. Com­pet­i­tive­ness flow­ing from re­duced or non-pay­ment of du­ties upon en­try into the ex­port mar­ket,” said SRA Com­mis­sioner Gen­eral Dum­sani Masilela.

He said it is the tax­payer’s re­spon­si­bil­ity to en­sure that all pro­cesses that en­tail pay­ing of tax are care­fully scru­ti­nised. This is apart from the fact that there are clear­ing agents that deal with the nec­es­sary pa­per­work. “Im­porters, ex­porters, and man­u­fac­tur­ers are li­able for acts done by a clear­ing agent on their be­half.

An agent is fully empowered to ful­fil im­porter’s obli­ga­tions, in­clud­ing pay­ment of tax or penal­ties. Im­porters and agents are jointly and sev­er­ally li­able in terms of Sec­tion 43 of the Cus­toms Act,” he said.

Masilela high­lighted that SRA per­mits VAT ex­emp­tion on cer­tain im­ports in the coun­try but it is granted only in re­spect of the fol­low­ing goods (VAT Reg­u­la­tion 23):

Im­por­ta­tions by in­ter­na­tional or­gan­i­sa­tions, goods for dis­abled per­sons or for the up­lift­ment of in­di­gent per­sons, goods im­ported un­der any tech­ni­cal as­sis­tance agree­ment (gov­ern­ment to gov­ern­ment or in­ter­na­tional or­gan­i­sa­tions’) and goods tem­po­rar­ily ad­mit­ted for pro­cess­ing, re­pair, clean­ing or re­con­di­tion­ing.

“Tem­po­rary ad­mis­sion is a cus­toms pro­ce­dure that al­lows goods im­ported into the coun­try to be used for an au­tho­rised spe­cific pur­pose and for a spe­cific pe­riod, on con­di­tion that the goods are ex­ported from the coun­try within the pe­riod with­out hav­ing un­der­gone any change ex­cept for main­te­nance and nor­mal wear and tear due to the use made of the goods whilst in the coun­try,” he said.

Ac­cord­ing to Masilela, the fol­low­ing goods are al­lowed for spec­i­fied pur­poses in terms of Sched­ule 4: Con­tain­ers and ar­ti­cles used as pack­ag­ing, pri­vate mo­tor ve­hi­cles be­long­ing to per­sons tak­ing up tem­po­rary res­i­dence (six months) or for­eign tourists. Mod­els and pro­to­types to be used in the man­u­fac­ture of goods, in­stru­ments, ap­pa­ra­tus and ma­chines, made avail­able free of charge to a cus­tomer by or through a sup­plier, pend­ing de­liv­ery or re­pair of sim­i­lar goods.

Machin­ery or plant leased for use on con­tract in civil en­gi­neer­ing or con­struc­tion work and goods im­ported for any other pur­pose ap­proved by the com­mis­sioner gen­eral.

FIRM AND CLEAR: Swazi­land Rev­enue Au­thor­ity Com­mis­sioner Gen­eral Du­misani Masilela.

Newspapers in English

Newspapers from Swaziland

© PressReader. All rights reserved.